DPR Asks Foreign Workers To Have A Tourist Visa To Be Dealt With Firmly: Pity, Local SMEs Are Destroyed!

Photo by Grab on Unsplash

JAKARTA - Member of the DPR for the 2024-2029 period, Daniel Johan, assessed that there are many problems that are being faced by the community, especially in the real sector. One of them is about foreign workers (TKA) who use tourist visas to run trade businesses in Indonesia, which can be a threat to MSMEs.

"Now we have to pay attention to that many of our real sectors are starting to be controlled by foreign workers who use tourist visas. Everything is added, sorry for local SMEs," said Daniel, Monday, October 7.

The mode of these illegal foreign workers sells their belongings at a lower price because they do not pay sales taxes considering they are in Indonesia with tourist visas. Daniel highlighted how these rogue foreign workers import goods from abroad to be sold in Indonesia without procedures and mechanisms according to the rules.

"They import themselves, we only become a market. These foreigners themselves import their own goods but they penetrate our market," explained the member of the council who previously served in Commission IV.

There are many like in Bali, Glodok, Mangga Dua, Tanah Abang. They all control the market from cellphones, clothes to watches. They use a lot of tourist visas and it destroys our local entrepreneurs," Daniel continued.

According to him, the phenomenon of foreign workers with tourists who dominate the Indonesian market is detrimental to the people's economy. Not to mention the impact on local human resources (HR) because their efforts do not absorb Indonesian workers.

"Their money does not rotate in Indonesia because they send it abroad, so it does not increase people's purchasing power which is currently needed by our economic growth and their activities do not absorb our energy," he explained.

Daniel also questioned the Customs and Excise authorities who passed the goods sold by foreign workers, in the midst of many people who were hit by problems with excise matters when they wanted to bring in goods from abroad.

"They don't pay taxes. The state is harmed but how come Customs and Excise can pass, immigration passes, the police pass. We ask for strict action against illegal foreign workers like this," said Daniel.

"Meanwhile, we remember some time ago that our TKI brought home its goods to be confiscated by Customs and Excise. This is ironic," added the legislator from the West Kalimantan I electoral district.

Daniel also highlighted the issue of the Temu Application which has recently been in the spotlight. The Temu application is an e-commerce application from China that has begun to enter Indonesia. The application became a discussion because of the concept of selling goods from factories directly to consumers.

With such a concept, the selling price of goods is cheaper than other e-commerce platforms. This means that the products sold break the chain of functions of retail traders, the majority of which are small business actors such as SMEs.

"Moreover, there is an application from China, our SMEs are increasingly threatened," said Daniel.

Daniel added that the presence of the Temu application with such an unhealthy business model threatens Indonesia's economic sovereignty.

Cheap imported products sold through this platform can kill local MSME businesses that have struggled hard to compete, he said.

The Temu application is also increasingly detrimental to the country's economy because their transactions are not taxed. For information, the Temu Application has not yet applied for a permit as an e-commerce in Indonesia. The Ministry of Trade emphasizes that all foreign e-commerce must comply with the Regulation of the Minister of Trade (Permendag) No. 31 of 2023 concerning Trade Through Electronic Systems.

As long as the Temu application still does not meet the requirements, such as for cross-border goods at least US$100, the Government will not issue a permit to trade in Indonesia. This is done to protect the industry and protect domestic production.

Therefore, Daniel encourages the Indonesian people not to be tempted by the price of cheap goods from foreign platforms that threaten the national economy. He encouraged the public to support domestic products whose quality is no less competitive than foreign products.

"By buying MSME products, we will not only help improve the local economy, but also maintain cultural diversity and local wisdom," he appealed.

Daniel hopes that the Government will tighten the trade control process which has recently been filled with fraudulent practices from foreign business actors. He also encouraged the authorities not to hesitate to take action against rogue parties who threaten the domestic industry and market.

Indonesia must show its defenses. Do not let us be manipulated by foreign parties who continue to want to control our market, especially those who use fraudulent methods, "said Daniel.

"When from gold mines, swallows, clothes, electronics, to restaurants we just let them go, they penetrate local entrepreneurs. The government must bring order and take firm action, we can destroy our SMEs if we continue to do this," he concluded.